US Housing Market's Spring Selling Season Collapses for Fourth Year

The US housing market's crucial spring selling season has failed for the fourth consecutive year, according to Wolf Richter on Wolf Street. Mortgage applications to purchase a home remain near rock-bottom levels, down 34% from the same week in 2019, even below the lockdown spring of 2020. The average 30-year fixed mortgage rate rose to 6.45% in the latest week, back in the 6-7% range since September 2022. Pending home sales for March were down 30% from March 2019, after hitting a record low in January. The Federal Reserve's interest rate hikes and inflation resurgence have kept mortgage rates elevated, while the "lock-in effect" from ultra-low rates during the pandemic (below 3%) discourages homeowners from selling. Refinancing applications spike briefly when rates dip but remain low compared to the 2020-2021 boom. The spring selling season has been a dud in 2023, 2024, 2025, and now 2026.